Johnson Controls, Inc. (NYSE: JCI) has signed an agreement to acquire 90 percent of its existing joint venture with Delkor Corporation, a leading automotive battery manufacturer based in Seoul, South Korea.
The remaining 10 percent will be acquired by the local management team, with all transactions completed no later than Aug. 15, 2010.
"Delkor is a strong and well-respected brand in Asia," said Alex Molinaroli, president of Power Solutions for Johnson Controls. "The acquisition further represents our commitment to local manufacturing presence and growth in Asia, complementing our recent announcements regarding our planned investments in China."
As Delkor integrates into the Johnson Controls network and its market-leading technology, the local management team, led by Delkor President H.S. Kwon, will remain in place and will continue to run the day-to-day business.
"We have every confidence that the Delkor management team will continue to serve our customers with the same reputation they have in the marketplace for quality and service as we continue to grow the business," said Molinaroli.
Johnson Controls will invest approximately $90 million in the acquisition. The company is also investing an additional $40 million to add 2.7 million units in capacity, increasing Delkor's total capacity to approximately 10 million batteries per year.
The Delkor joint venture was part of Johnson Controls' acquisition of Delphi's global automotive battery business in 2005.
Source: http://www.johnsoncontrols.com/